Robot or manual trading
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The discussion rages on because most leading investment institutions and hedge funds now utilise well-optimised trading robots and algorithms to pull money out of the markets.
Does that mean automated trading is the way you should go too?
Forex Robot VS Manual Trading
Read on as we discuss the merits of automated trading methods and their advantages or disadvantages compared with manually executing trades in the markets yourself. Source: Pixabay Which robot or manual trading can you use to automate your trades? Automated trading can be utilised on both the forex and stock markets. With so much money flowing through the markets, spanning major, minor and exotic forex pairs, traders require razor-sharp instincts to execute their positions.
These rules normally include technical indicators that the bots can look out for in the markets to try and take advantage of trading opportunities, such as support and resistance points. Once orders are automated in the market, additional rules can also be customised for specific trades, such as trailing and protective stop losses and profit targets; all of which are a godsend in such fast-moving markets.
Manual Forex Trading vs Automated Forex Trading
Are automated bots easier to use than manual trading software? Platforms like MetaTrader4 allow you to quickly build your own trading algorithms and incorporate trading signals and indicators of your own.
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The system will use these predetermined rules and conditions and only place trades on your behalf if the robot or manual trading behaves the way you intend it to. The execution of automated trading bots Vs manual trades When it comes to placing manual orders in the financial markets, you are continually at the mercy of your equipment, connectivity and your own brain.
What is a Forex robot?
There may be times when you are distracted from your screen, resulting in you missing an ideal entry point. Markets move fast and some manual traders can also be demoralised by watching trades soar through their profit targets or blow through a stop-loss point before an order has even reached the market.
By automating your trades, you can eliminate emotion from your trading, ensuring your bankroll only gets involved during optimal market conditions and avoiding overtrading every perceived opportunity.
Automated trading and the issue of risk management Even in the most volatile of markets, automated trading is hugely beneficial to protect your bank.
By abiding by automated trading rules and conditions, you can be sure that your trades are only executed at the right time and your orders will always be closed once your profit and loss benchmarks are hit. Your trading plan can be followed to the absolute letter.
Which markets can you use to automate your trades?
The drawbacks of automated trading Of course, the biggest potential issue with automated trading is mechanical failure. This is often due to connectivity issues which may be beyond your control.